responsibilities of directors and auditors
In October 2020, the head office of Joey Limited was damaged by a fire. A lot of the company's accounting records were destroyed before the audit for the year ended 31 December 2020 took place, as Joey Limited has no practice of using electronic accounting records. The company's financial accountant has prepared financial statements for the year ended 31 December 2020 on the basis of estimates and the information he has been able to salvage. You have completed the audit of these financial statements.
a) Explain how your audit report would be affected by the fire at the head office of Joey Limited and the possible audit opinions in this situation.
b) Compare the responsibilities of directors and auditors regarding the published financial statement of Joey Limited.
Step by step
Solved in 3 steps
